Roseville Budget: No Layoffs, Furloughs for FY 2012-13

City of Roseville staff outlined the city’s budget for fiscal year 2012-13 during a public budget meeting Monday evening.

The proposed budget is balanced and is a “status quo budget from last year,” Roseville City Manager Ray Kerridge said. “We don’t think there are any surprises in this budget.”

The good news is that no layoffs and staff furloughs are needed to balance the budget, Kerridge said.

The proposed city-wide budget total is approximately $406.2 million. That includes $119 million in general funds and $192 million in utilities costs, according to Russ Branson, Roseville city treasurer. The council will see the budget again on June 20, and could approve it then.

Branson broke the budget down into good news and not-so-good news.

The good news is that the general fund is balanced and services are maintained. However, the bad news is that revenue is stationary and structural deficit remains, Branson said.

Expenses exceed revenue

Branson said they expect expenses to be greater than revenues for 2013. Some of the major expense changes in 2013 include a compensation increase for police that was negotiated in a prior contract, workers compensation insurance and employees paying PERS employee share.

Money used to balance the budget will come from a number of areas including:

• Ongoing contributions to workers’ compensation, retiree health and CIP rehabilitation: $6.9 million
• FY 2012 carryover: $4.6 million
• Transfers: $.7 million
• Operating reserve: $3 million
• Employees pay PERS “employee share”: $1.8 million

5-year forecast

Branson said the city expects to see small, but steady growth in sales tax within the next five years. They also anticipate an increase in revenue.

Staff is looking at possible ways to cut costs to continue to balance the budget. Cost-cutting possibilities include looking at opportunities to increase fees in areas that make sense, such as building permits or parks; voter tax increases; concession bargaining, which will happen in the fall; contracting out where feasible; and critically looking at positions to see if a replacement is necessary if an employee leaves or is promoted.

“We need to continue driving down costs,” Branson said. “These are just tools available and it’s a policy call.”

Mayor Pauline Roccucci reiterated that Roseville City Council is not planning to increase fees at this time.